The US Inflation Rate Is Expected to Be 4 Percent Over

question 7

Multiple Choice

The U.S. inflation rate is expected to be 4 percent over the next year, while the European inflation rate is expected to be 3 percent. The current spot rate of the euro is $1.03. Using purchasing power parity, the expected spot rate at the end of one year is $____.

• A)1.02
• B)1.03
• C)1.04
• D)none of the above

---

Definitions:

Callus

Undifferentiated tissue formed on an explant (excised tissue or organ) in plant tissue culture.

Trichomes

Small hair-like outgrowths on plants that serve various functions including protection against herbivores and minimizing water loss.

Parenchyma

A type of plant tissue composed of living cells that are often spacious and used for functions such as photosynthesis, storage, and tissue repair.

Ground Tissue

A type of plant tissue that fills the interior of a plant, consisting of parenchyma, collenchyma, and sclerenchyma cells, and is responsible for photosynthesis, storage, and support.